The Phu Nhuan Jewelry Joint Stock Company (HSX stock code PNJ) has set a target of opening 40 new stores this year and recording profit growth of 33 per cent.

It held its 2017 annual general meeting (AGM) on April 27, to approve results in 2016 and targets set for 2017.

It Board of Management reported total revenue of VND8.56 trillion ($376.8 million) in 2016, up 11.3 per cent and fulfilling 97.5 per cent of the annual plan. Wholesale sales of jewelry reached 78.9 per cent of the plan and were down 15 per cent compared to 2015,

Revenue from sales of gift and promotional products grew 59 per cent and exceeded the plan by 11 per cent. PNJ sees this as a potential niche market.

Exports grew 10 per cent, fulfilling 95 per cent of the annual plan. Silver jewelry increased 22.3 per cent in revenue and nearly met the annual target. Its online business contributed only a small part to total revenue, with VND15.2 billion ($670,000), reaching 96 per cent of the plan and up 30 per cent against 2015.

PNJ increased its network over the last year, with 30 new stores (five more than targeted), bringing the total number to 219 and increasing its coverage to 47 out of Vietnam’s 63 cities and provinces. This resulted in higher sales, general and administration (SG&A) expenses of 9.5 per cent and 1.4 per cent, respectively.

Pre-tax profit in 2016 reached VND608 billion ($26.7 million), up 223 per cent compared to 2015 and 32.2 per cent higher than planned. After-tax profit was VND470 billion ($20.7 million), up nearly five-fold and exceeding the plan by 30 per cent. Consolidated net profit came in at VND449 billion ($19.8 million), nearly double against 2015.

According to Chairman Cao Thi Ngoc Dung, 2017 is a pivotal year for the company’s ten-year development strategy for 2012-2022. The company focuses on three main areas of business: improvements in the quality of its human resources, its processing system, and the computerization of its management system.

It also targets promoting efficiency in its supply chain, with the goal of opening 40 more stores this year and reaching the 300-mark in 2018.

In terms of financial performance, the company plans to increase sales of gold jewelry (wholesale and retail) by 23 per cent, silver jewelry sales by 30 per cent, and export sales by 20 per cent. Consolidated net sales are targeted at VND10.2 trillion ($449 million), up 19 per cent year-on-year, with net profit of VND600.8 billion ($26.4 million), up 33 per cent. The dividend will be maintained at 18 per cent.